On hyperbolic discounting and uncertain hazard rates
نویسندگان
چکیده
منابع مشابه
Discounting the Distant Future with Uncertain Rates
Costs and benefits in the distant future have little consequence today when valued with conventional discount rates. This is particularly relevant for assessing policies with effects hundreds of years in the future, such as mitigating the damages from global warming. Many authors and analysts have responded by arguing for the use of lower discount rates over longer horizons, based primarily on ...
متن کاملUncertainty and Hyperbolic Discounting
Empirical studies in economics and behavioral ecology suggest that, ceteris paribus, animals and humans appear to place less weight on the future than on the present, i.e., they act as though they discount future payoffs. Furthermore (and more interestingly), they do so with discount rates that increase as the time before those payoffs are realized grows shorter. In other words, subjects act as...
متن کاملGlobal warming and hyperbolic discounting
The use of a constant discount rate to study long-lived environmental problems such as global warming has two disadvantages: the prescribed policy is sensitive to the discount rate, and with moderate discount rates, large future damages have almost no effect on current decisions. Timeconsistent quasi-hyperbolic discounting alleviates both of these modeling problems, and is a plausible descripti...
متن کاملHyperbolic discounting and secondary markets
Does the existence of secondary markets for durable goods affect price and allocation on primary markets? We study competitive equilibria for durable goods where the possibility of future trade on secondary markets does not affect consumer behaviour in the primary market, provided consumers are exponential discounters. If consumers are hyperbolic discounters, however, secondary markets are no l...
متن کاملGolden Eggs and Hyperbolic Discounting
Hyperbolic discount functions induce dynamically inconsistent preferences, implying a motive for consumers to constrain their own future choices. This paper analyzes the decisions of a hyperbolic consumer who has access to an imperfect commitment technology: an illiquid asset whose sale must be initiated one period before the sale proceeds are received. The model predicts that consumption track...
متن کاملذخیره در منابع من
با ذخیره ی این منبع در منابع من، دسترسی به آن را برای استفاده های بعدی آسان تر کنید
ژورنال
عنوان ژورنال: Proceedings of the Royal Society of London. Series B: Biological Sciences
سال: 1998
ISSN: 0962-8452,1471-2954
DOI: 10.1098/rspb.1998.0534